After the PCE data comes out tonight, the market will most likely continue to be bearish.
According to the data, the probability of the Fed cutting interest rates is as follows:
The probability of the Fed keeping interest rates unchanged in August is 89.7%, and the probability of cutting interest rates by 25 basis points is 10.3%. The probability of the Fed keeping interest rates unchanged by September is 35.9%, the probability of a cumulative 25 basis point cut is 57.9%, and the probability of a cumulative 50 basis point cut is 6.2%.
The market has bottomed out now, and it is unlikely to fall, so it is almost sideways before the interest rate cut!
